STORY: Diageo reassured investors on Tuesday (August 5) by reporting a smaller-than-expected fall in annual profit.

That’s despite raising their estimate of a tariff impact for the year to $200 million tariff.

The world’s top spirits maker also said it expected to have a permanent new CEO by October after a surprise exit from former leader Debra Crew.

Shares rose almost 7% in early trade before scaling back.

The Guinness maker forecast flat sales for its current 2026 financial year.

But investors said that Tuesday's relatively muted results were welcome as it signaled a possible turning point for the firm.

It comes after an uncertain period for the Johnnie Walker maker, with prolonged sales weakness and missed forecasts.

That’s as well as guidance downgrades and a sudden CEO exit.

Diageo is now looking for new management to guide it through plans to cut costs and make substantial asset sales by 2028.

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High interest rates and inflation have hit consumers' wallets.

Diageo's shares have been hit hard in recent years, losing 30% of their value this year alone.

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